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masha68 [24]
3 years ago
9

What is moral hazard? It refers to the actions people take before they enter into a transaction so as to mislead the other party

to the transaction. It refers to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off. It refers to the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction. It refers to the private, self-interested actions that people pursue, which when taken collectively leads to a loss in economic surplus.
Business
1 answer:
algol133 years ago
5 0

Answer: Option (a) is correct.

Explanation:

Moral hazard is a type of risk that one of the party has not entered into the agreement with a good intention. Also, they may provide incorrect or misleading information about them to take an advantage from acting opposite to the laid principles.

These type of activities mostly occurred in the lending and insurance industries where defaulters were not provided the true information about their work and business.

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Explanation:

The options include:

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An ethics line refers to the anonymous on-line system which can be used by an employee to report bad behavior or something unethical or illegal.

Ethics line are typically available 24 hours a day, 7 days a week and reports made are confidential. Therefore, the correct option is "All of the above".

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Hemisphere Corp. is considering a Build-Operator-Transfer (BOT) contract to construct and operate a large dam with a hydroelectr
Anna007 [38]

Answer:

The dam should be constructed. The investment discounted payback is 25 years.  

Explanation:

We have to make a cash flow for this case with the given data.  See the document attached.  

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Download xlsx
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4 years ago
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